Azerbaijan Tax Calculator (2026)
Income tax rates and take-home pay for Azerbaijan
Advertisement
Azerbaijan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Non-taxable threshold (up to AZN 8,000 monthly) | AZN 0 - AZN 96,000 | 0.0% |
| Taxable income above AZN 8,000 monthly | AZN 96,000+ | 14.0% |
Social Security Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Up to AZN 200 monthly | AZN 0 - AZN 2,400 | 3.0% |
| Above AZN 200 monthly (plus AZN 6 base) | AZN 2,400+ | 10.0% |
Unemployment Insurance Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Unemployment insurance | AZN 0+ | 0.5% |
Mandatory Medical Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Up to AZN 8,000 monthly | AZN 0 - AZN 96,000 | 2.0% |
| Above AZN 8,000 monthly (plus AZN 160 base) | AZN 96,000+ | 0.5% |
Key Facts
Tax Year
2025
Currency
AZN
Top Rate
14.0%
Brackets
2 brackets
Tax-Free Threshold
AZN 96,000
Social Contributions
3 items
Assumptions
- · Model assumes employee in non-oil-gas and non-government sector, within the seven-year grace period (from 1 January 2019).
- · Personal income tax: 0% on monthly income up to AZN 8,000; 14% on amount exceeding AZN 8,000.
- · Social security contributions: tiered structure with 3% up to AZN 200 monthly, then AZN 6 + 10% above AZN 200.
- · Unemployment insurance: 0.5% employee contribution on gross monthly salary.
- · Mandatory medical insurance: 2% up to AZN 8,000 monthly, then AZN 160 + 0.5% above AZN 8,000.
- · All contributions are calculated on gross income and are deductible from taxable income.
- · Standard rates applicable to oil/gas and government sectors after the seven-year period are not modeled.
- · Tax is calculated on a monthly basis and aggregated annually.
- · Non-resident taxation rules are excluded from this model.
Frequently asked questions
What is the income tax rate in Azerbaijan?
Azerbaijan has a two-bracket income tax system: 0% on monthly income up to AZN 8,000, and 14% on any amount exceeding AZN 8,000. This means if you earn AZN 10,000 per month, you pay no tax on the first AZN 8,000 and 14% tax only on the remaining AZN 2,000.
Do I have to pay social security contributions in Azerbaijan?
Yes, employees must pay three types of social contributions from their gross salary: social security (3% up to AZN 200 monthly, then AZN 6 plus 10% above that), unemployment insurance (0.5%), and mandatory medical insurance (2% up to AZN 8,000 monthly, then AZN 160 plus 0.5% above that). The good news is that all these contributions are deductible from your taxable income, which reduces your overall tax burden.
Is there a special tax rate for expats or remote workers in Azerbaijan?
The tax calculator assumes you are an employee in a non-oil-gas and non-government sector within the seven-year grace period starting from January 1, 2019. If you fall into this category, you benefit from the favorable 0% tax rate on income up to AZN 8,000 monthly. Non-resident taxation rules and standard rates for oil/gas or government sectors are not covered in this model.
How is income tax calculated, monthly or annually?
Income tax in Azerbaijan is calculated on a monthly basis and then aggregated annually. This means your tax liability is determined each month based on your monthly income, which is especially relevant when calculating the AZN 8,000 monthly threshold for the 0% tax bracket.
What is my take-home pay after all deductions?
Your take-home pay is calculated by subtracting all social contributions (social security, unemployment insurance, and mandatory medical insurance) and income tax from your gross salary. Since all contributions are deductible from taxable income, they reduce the amount subject to the 14% tax rate on income above AZN 8,000.
Advertisement
Other tax calculators
Compare Azerbaijan with another country
See side-by-side tax breakdowns for any two countries